The building with the best upside is often the one a permanent lender will not touch yet: a half-empty flex building off Loop 820, an apartment complex with units offline, a storefront block on an older Fort Worth corridor waiting for new tenants. A bridge loan covers the gap between buying it and stabilizing it.
In short: LendingStreet offers commercial bridge loans in Fort Worth for investors acquiring, leasing up, renovating or repositioning 9+ unit multifamily, mixed-use, retail, office and flex property. Bridge loans are short-term and interest-only, with custom terms up to $5M+, and every one needs a clear exit: a permanent commercial or DSCR loan once the property is stabilized, or a sale.
Permanent commercial loans are sized on stabilized NOI. If occupancy is low, rents are well below market, or part of the building is offline for renovation, the current NOI may support only a small permanent loan or none at all. A bridge loan is sized for the transition and repaid when the business plan is done.
Our investor loans are business-purpose loans on non-owner-occupied property. The bridge is for buildings you will lease to tenants, not space for your own business.
Older garden apartment complexes on the east and south sides of Fort Worth are common value-add targets, with units that need interiors, roofs or systems before rents can rise. Storefront and small office buildings along older corridors such as Camp Bowie Boulevard or near the Near Southside may come to market with vacancy after a long-time tenant leaves.
Flex and light industrial buildings along Loop 820, I-35W and toward the Alliance area in north Fort Worth sometimes trade partially leased, with space that needs dividing or updating for new tenants. In each case the question is the same: what will the property earn once the plan is done, and how confident can everyone be in getting there?
Bridge loans are short-term and interest-only, so payments cover interest during the hold and the principal is repaid at exit. Terms are set per deal. Underwriting looks at the purchase price and as-is value, the renovation budget and timeline, the expected stabilized NOI, and your experience completing similar plans.
A full valuation is required. Expect an appraisal that addresses both the as-is condition and, often, the expected value once stabilized, plus property condition and environmental review where the property type calls for it.
This example is illustrative and not a quote. Values, NOI and timing are assumptions for the math, not Fort Worth market data.
An investor buys a partly leased flex building for $2,000,000 and plans $350,000 of improvements, paid from the investor's own funds in this example. A bridge loan of $1,300,000, or 65% of the purchase price, closes the acquisition. In-place NOI is an assumed $170,000, and estimated annual interest on the interest-only bridge is $136,500, so current income covers interest about 1.24x.
After lease-up, NOI is projected at $235,000 and the stabilized value is assumed at $2,900,000. A permanent loan sized at the lower of 75% LTV and a 1.25x DSCR comes to $2,165,000, with estimated annual debt service of $187,785, DSCR of 1.25x and LTV of 74.7%. That is enough to repay the $1,300,000 bridge balance at exit.
| Stage | Item | Amount |
|---|---|---|
| Bridge | Purchase price | $2,000,000 |
| Bridge | Improvement budget, investor funded | $350,000 |
| Bridge | Bridge loan amount | $1,300,000 |
| Bridge | In-place NOI | $170,000 |
| Bridge | Estimated annual interest, interest-only | $136,500 |
| Bridge | NOI coverage of interest | 1.24x |
| Exit | Projected stabilized NOI | $235,000 |
| Exit | Assumed stabilized value | $2,900,000 |
| Exit | Permanent loan amount | $2,165,000 |
| Exit | Estimated annual debt service | $187,785 |
| Exit | DSCR | 1.25x |
| Exit | LTV | 74.7% |
Every bridge loan needs an exit that works on realistic numbers. For a permanent refinance, test the stabilized NOI against the DSCR and LTV limits, using taxes that reflect a reassessed value and an insurance quote that reflects the finished building. For a sale, consider that Texas is a non-disclosure state, so buyers and appraisers work from limited public price data.
Build in time. Leasing commercial space in Fort Worth can take longer than planned, and permits and contractor schedules slip. A business plan with some cushion is easier to underwrite than one that only works if every lease signs on schedule.
During the bridge period you pay interest plus the full cost of owning the building. Property taxes are levied by Tarrant County, the city, the school district and other taxing units on the appraisal district's value, and a sale or renovation can raise that value. Owners can protest each year.
Insurance on a building under renovation, or one with a flat roof in hail country, may need builder's risk or vacancy coverage. Budget these costs and hold reserves for months when NOI runs below plan.
Commercial bridge loans take longer than residential bridge loans because of the valuation, lease review and third-party reports. A complete package shortens that.
Share the property, the plan and the exit through the form below, or call (877) 298-1001. We will review the as-is and stabilized numbers, test the exit on DSCR and LTV, and send back terms set for that deal.
9+ unit multifamily, mixed-use, retail, office, flex and light industrial, and similar income property. Buildings with 1 to 8 units use our residential bridge programs.
Yes. Payments cover interest during the hold, and the balance is repaid when you refinance or sell.
Yes. Commercial bridge loans need a full valuation, often covering both as-is value and expected stabilized value.
Current income and your reserves both matter. Underwriting looks at in-place NOI, the time to stabilize and the liquidity you hold to carry the property.
A permanent commercial or DSCR loan sized on realistic stabilized NOI, or a credible sale. The exit has to work after taxes and insurance are updated.
Longer than a residential bridge loan, because of the appraisal, lease review and third-party reports. A complete package helps.
Yes. Once the property is stabilized and cash-flow positive, it can be reviewed for a permanent commercial loan.
Recourse varies by program. Some programs ask the principal to sign for the loan personally.
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